Exercise 20.14 (Static) CVP with Multiple Products (LO20-7, LO20-8) Water World sells three products: ski vests, slalom

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Exercise 20 14 Static Cvp With Multiple Products Lo20 7 Lo20 8 Water World Sells Three Products Ski Vests Slalom 1 (25.84 KiB) Viewed 73 times

Exercise 20.14 (Static) CVP with Multiple Products (LO20-7, LO20-8) Water World sells three products: ski vests, slalom skis, and ski ropes. Information related to each product line is provided as follows. Slalom Ski Vests Ski Skis. Ropes $ 120 $50 Unit selling price Unit variable cost Sales mix percentage 60 10 20% 70% 10% The company's annual fixed costs are approximately $741,000. a. Compute total annual sales that the company must generate to break even. (Hint: Determine the contribution margin ratio for each product.) b. Compute total annual sales that the company must generate to earn operating income of $234,000. a. Break even annual sales dollars b. Target sales dollars $ 300 210